ESSEC‐G‐213‐1 

  

ESSEC Business Cases

Gucci : Positive Luxury

This case was researched and prepared by Lavinia Ricciolio, while on her M.Sc. program under the
supervision of Ashok Som, Professor, Management Department at ESSEC Business School. This case was
developed as a basic for class discussion rather than to illustrate either effective or ineffective handling of an
administrative situation.
REV: JULY 1, 2019

 
© 2019. ESSEC Ashok Som. All rights reserved.

1
It was winter of 2016 and Marco Bizzarri, President and CEO of Gucci was in Rome. Walking through the
streets of the city full of Christmas lights and decorations, he remembered when he walked those same
streets two years before. In December 2014, he went to meet for the first time Alessandro Michele. That first
meeting in Michele’s house, lasted 4 hours and marked the beginning of their collaboration. He thought
about what they had done and the results they had achieved together. When he was chosen to replace the
then CEO, Patrizio di Marco, Gucci was facing difficult times as revenues were declining. But only in the first
half of 2015, he and Alessandro turnaround the declining trend and transformed it into a nothing less than a
miraculous growth story, which no one ever imagined before.

When looking at the past, it was impossible not to compare himself and Alessandro to other Gucci duos that
made the history with the brand. He remembered about Guccio Gucci who founded the brand and, with the
help of his son Aldo, was responsible for the brand’s international expansion. It was the beginning and it was
loved by Hollywood celebrities. He remembered when Domenico De Sole and Tom Ford, made the brand
rise again after the family crises of 80’. Finally, he thought about Patrizio di Marco who brilliantly re-launched
the brand together with his partner Frida Giannini.

Looking at those couples, Marco Bizzarri noticed a common thread. Since the day of its founder, the brand
had always shown a particular attention toward sustainability, starting from its core values based on quality
and craftsmanship, to Frida Giannini’s biodegradable sunglasses. However, he thought to himself that it was
time for the brand to make people recognize its efforts.

History of Gucci
Gucci's "Forever, now" slogan, was a superb definition of sustainability. As Patrizio di Marco, President and
CEO of Gucci from 2009 to 2014 emphasized, sustainable and CSR principles, although implicitly, have
always been part of Gucci’s heritage and values:

“Today, as in the days of the firm’s founder Guccio Gucci, the critical success factors of our
company remain the craftsmanship [of our products], their absolute quality, that they are
made in Italy, and the passion of people who work for this company1”.

- Patrizio di Marco, 2009

Guccio Gucci founded the label in Florence in 1921. The founder, son of an Italian leather goods maker
originated from the north, is born in Florence in 1881. He didn’t want to follow in his father’s steps, so he
decided to travel as a teenager. He worked as a waiter, dishwasher and also as a concierge in London or
Paris. As an elevator attendant in the Savoy, one of the most prestigious hotels in London, he met celebrities
like Marilyn Monroe, Winston Churchill, Frank Sinatra and Claude Monet. It allowed him to observe and
understand the style of wealthy people. He was impressed by the luxurious luggage the guests would use.
Before leaving England, he visited the manufacturer H.J. Cave & Sons, a London-based leather luxury
goods company founded in 1839, regarded by some as the inventor of the luxury leather handbag.

After all, as he returned to Florence in 1902, he decided to still take the same occupational route as his
father. For two decades he has worked for the leather manufacturer Franzi, and in 1921 he decided to found
his first Gucci retail outlet. (see Exhibit 1). That’s the starting point of the legendary history of Guccio Gucci
which began with the creation of high-quality goods that revolutionised the leather goods industry. The
sophistication of his creations was due to the combination of what he had witnessed abroad with the
craftsmanship of Italy. This shop, situated in the city centre, firstly on Via Vigna Nuova and then Via del
Parione, soon became a regular stop for tourists who were numerous to visit Florence in the ‘30s, but also a
stop for the Tuscan nobility, who was searching for horse riding accessories. It explains the creation of one
of the most successful symbols of the House : the horsebit. (see Exhibit 2).

1
Press release for the signature of the “Agreement on the Sustainability of our Supply Chain”, 16 September
2009.
https://www.researchgate.net/publication/256022185_The_Evolution_of_Corporate_Social_Responsibility_in
_Gucci_From_Risk_Management_to_Stakeholder_Engagement
2
Later, with the help of his three sons, Aldo (1905–1990), Vasco (1907–1975), and Rodolfo (1912–1983),
Guccio expanded the company : they built additional shops in Florence and new stores in Rome (1938),
Milan (1951) and New York (1953) where clients could buy crafted leather accessories such as handbags,
shoes, ornamented loafer but also silks and knitwear in a signature pattern. As the business expanded,
Guccio Gucci did not compromise on the quality of his items and always offered creative designs.

Initially, Gucci employed skilled workers in basic Florentine leather crafts, attentive to finishing. He was
known to employ the best of craftsmen from his neighbourhood, with no compromise on quality. With
expansion, he introduced machine stitching, but never taking his eyes off from the details. Although Gucci
organized his workrooms for industrial methods of production, he maintained traditional aspects of
fabrication. Since the days of its founder, Gucci continuously showed a commitment to high quality and
ethical values in all aspects of the business i.e. product quality, made in Italy, passion of people.

Second World War Period

Many of Gucci designs were inspired from horse racing. The company quickly became known for its
incredible level of craftsmanship. Gucci was forced to innovate during the Fascist dictatorship as it was not
allowed to import materials. He began to experiment by using atypical materials (hemp, flax, jute) for his
luxury clientele. The forward-thinking house was the first to start using 'poor' materials to create ‘luxury’
goods. While that may have been more of a pragmatic decision, born out of necessity, in 2017, Gucci CEO
Marco Bizzarri remembered:

"Being socially responsible is one of Gucci's core values, and we will continue to strive to do
better for the environment and animals and therefore fur will be banned from Gucci
collections as of 20182.”

- Marco Bizzarri

The firm was polarized into mundane available materials on the one hand, through to high-quality products
on the other. This would have become a feature that made the fortune of the brand starting with the Bamboo
Bag (1947), which was born because the craftsmen began to brown the canes to create the handle (see
Exhibit 3). In the same period, Aldo Gucci introduced the pigskin and the cotton canvas handbags which
became a signature house material.

Gucci's signature looks

“Throughout the 1950s, Gucci relied on the equestrian world that initially established him as a notable
designer. For example, the instantly recognizable green and red striped band became one of its signatures.”3
(see Exhibit 4). The designer matched contrasting colours in his collections, establishing Gucci’s iconic
green-red-green stripe.

Guccio Gucci died at the age of 72, a fortnight after the New York store opened in 1953. “Following his
death, his sons took over the business, with Rodolfo managing the company in Milan, Vasco supervising
operations in Florence, and Aldo moving to New York to manage the overseas branch.”4

In homage to his father, his son Aldo Gucci created the world famous double G logo (see Exhibit 5), inspired
by the initials of the founder of the brand. This logotype has incarnated since the early 50s Italian luxury and
fashion and from the 60s started to be considered the most popular and recognized haute couture house
logo. The logo was used as a clasp for handbags originally and was often in black colour that “represented
harmony, domination, as well as the brand’s excellence, notorious character traits.”5

2
https://www.independent.co.uk/news/business/news/gucci-fur-free-2018-commitment-social-
responsibility-italian-fashion-brand-marco-bizzarri-a7996061.html
3
https://soundcloud.com/dj-petko/petko-turner-technotronica-gucci-fashion-show-after-show-
milano
4
https://www.thefamouspeople.com/profiles/guccio-gucci-18526.php
5
http://www.icon-icon.com/en/the-gucci-double-g-an-echo-of-eternity/
3
Hollywood era
In the mid-60s Gucci’s accessories were worn by celebrities around the world. Success kept following from
this and new retail stores were opened in London (1961), in Palm Beach (1961), in Paris (1963) and then in
Beverly Hills (1968). The haute couture house kept on creating new iconic pieces like the hobo bag,
moccasins and the Flora scarf designed by Vittoro Accornero for Princess Grace Kelly (see Exhibit 6). The
story is iconic : the youngest brother, Rodolfo Gucci, wanted the Princess to have a personalised present
from the house. Of course, she declined but he resisted and persisted so that she gave in for a scarf. The
38-colour Flora pattern was the result and is based on drawings of beautiful flowers and insects - butterflies
and dragonflies - put on silk : 38 stencils were used to make this one scarf ! “Flora was an homage to nature
and symbolized the changing of the seasons and the phases of life. The Flora pattern had become a
timeless Gucci classic which has since been used for other iconic products and not only for scarves.”6

The Hobo bag is another iconic accessory that was worn by celebrities : Liz Taylor, Peter Sellers but also
the american first lady Jackie Kennedy who wore the model “Jackie O” (see Exhibit 7).

The ‘70s were the years of expansion across East in Asia and in Australia. It lead not only to the creation of
the first pret-a-porter with the double G printed on shirts for instance, but also to to the opening of Tokyo
(1972) and Hong Kong (1974). Aldo Gucci started using increasingly sophisticated processes and more
luxurious materials for the Asian markets. Though the price increased it was quickly forgotten due to the
consistent quality and genuine Italian craftsmanship that was long appreciated.

"Quality is remembered long after price is forgotten ”7

- Aldo Gucci

Internal Strife at Gucci and Maurizio Era

In 1970, Aldo and Rodolfo Gucci, became equal shareholders in the company. The company prospered
through the 1970s, but the 1980s were marked by internal family disputes that brought Gucci to the brink of
disaster. So, with a dose of tax evasion from Aldo Gucci, the murder of Maurizio Gucci and then the
conviction of his wife hiring his assassins, the Gucci family had a fair share of few things on their plate to
deal with.

In 1979, the company launched a new diffusion line GAC (Gucci Accessories Collection), which was
designed to appeal to a wider range of consumers. Its launch represented a defining moment in which Gucci
lost control over the “quality” factor in its luxury production series, resulting in brand dilution. The Collection
comprised some 22000 products including key chains, alcohol, playing cards and even toilet paper all
carrying the Gucci name. The production of the GAC intensified counterfeiting including fake Gucci bags,
which featured the GG logo in plastic covered canvas.

After Rodolfo Gucci’s death in 1983, his son Maurizio became president of the company. He chose to
dismiss his uncle - Aldo Gucci. And the proved to be quite incompetent as a leading manager because his
analytical and management skills were not sufficient. Production and distribution became disorganized within
the company and prices were too high, even for a haute couture house. In 1988, he was compelled to sell
the family-owned company to Investcorp, a Bahrain-based company. With the involvement of Investcorp, a
number of appointments were made to turn Gucci around. This included Domenico di Sole as President and
Managing director of Gucci America and Dawn Mello, former President of luxury retailer Bergsolf Goodman.
Maurizio appointed Mello as Creative Director working with her to reinvent Gucci as classic brand. Under
Mello, Tom Ford was hired as Design Assistant. Together with Maurizio and Mello, he cut two-thirds of the
product line from 22000 to 7000 items and reduced the number of retail outlets from more than 1000 to 1808.

6
http://www.florencewebguide.com/gucci-museum.html
7
https://apinkmacaron.wordpress.com/2014/05/12/quality-is-remembered-long-after-the-
price-is-forgotten-aldo-gucci/
8
http://ualresearchonline.arts.ac.uk/970/1/Guccigroup.pdf

4
 “There was no clarity to the direction of the company and no cost controls, an equation that
added up to financial disaster (…) There were Gucci products really all over the place. The
product was viewed - and was - of a lower quality and the brand was really depleted. That
hurt the company a lot.”9

- Domenico De Sole

Maurizio resigned from his position as Chairman in 1993 as Gucci’s losses amounted to $102 million. The
same year Maurizio sold his 50% stake in Gucci to Investcorp leaving it with total control. In 1994 Investcorp
appointed Domenico De Sole as Chief Operator Officer (COO), Dawn Mello resigned as Creative Director
and her assistant Tom Ford took over. Tragically, Maurizio was murdered in Milan in 1995, and his former
wife, Patrizia Reggiani, was convicted of hiring his killers. Following his death, Investcorp sold 48.2% of its
shares gaining listings on the New York and Amsterdam Stock Exchanges. After those difficult years, Gucci
came to dominate the fashion world thanks to Tom Ford, the new creative director.

Domenico De Sole and Tom Ford at Gucci

In 1994, Ford became responsible for creative direction and by 1996 he directed all aspects of the company
including ready-to-wear clothing, visual merchandising, packaging, interior design, and advertising. Ford and
De Sole struggled to restore the former reputation of Gucci, while redirecting the growing brand to a new
level for the market of the late 1990s.

Oftentimes when designers begin to design a new collection, they begin in the brand archive to draw
inspiration and to reinterpret old classics in order to see the brand image consistent. Because Gucci had
typically done ready-to-wear collections mostly to supplement their leather goods and accessories divisions
that drove the business, they had few archives to pull from in order to draw inspiration from.

Ford created a completely new collection from scratch for his monumental August/Winter 1995 collection
(see Exhibit 8). The fact that Gucci had lost its place as a status symbol, that it didn’t have a cool factor and
was bankrupt because of Maurizio’s decisions as executive, created the perfect environment for Tom Ford to
thrive in. Nobody expected what they were about to see. In his August/Winter 1995 collection Ford sent
models down the runway wearing seventies inspired garb. From velvet hip huggers to a newly interpreted
horse bit loafer, the collection received much praise for both Tom Ford and the House of Gucci and was a hit
commercially, helping double Gucci’s revenues from 1995 to 1996.

As Ford continued on designing hit collections throughout the rest of 1990s, De Sole was busy fixing the
business disaster Maurizio Gucci had created. There were many problems De Sole had to deal with. The
most notable of all was fending off a hostile takeover and finding a new investor for Gucci. The hostile
takeover attempt came from Bernard Arnault, referred at that time as “Wolf in Cashmere” - the man who
made the luxury conglomerate LVMH, a global powerhouse with over 70 acquisitions.

Eventually, De Sole did find a buyer for Gucci, a Frenchman named Francois Pinault, who became the
architect of LVMH’s main competitor. The company, originally called Etablissements Pinault, in its initial
years was involved in the trade of timber and construction materials. It gradually entered the retail
distribution market, with the acquisition of Conforama in 1991. In 1994, it changed its name to Pinault-
Printemps-Redoute (PPR)10, and took control of French retailer Fnac, thus slowly moving to retail business.

In the end in 1999, PPR (now Kering) bought 42% of Gucci to officially ward off any other takeover attempts
from LVMH. With this acquisition, PPR/Kering entered for the first time the luxury sector and it kept investing.
It acquired Yves Saint-Laurent, YSL Beauté and Sergio Rossi, but also, through the GUCCI Group, it bought
the brands Bottega Veneta and Balenciaga in 2001 and concluded partnerships agreements with Stella
McCartney and Alexander McQueen.

In less than 10 years, De Sole had turned around the business end alongside Ford rebranding Gucci from a
tired leather bag brand to a leader in the fashion and ready to wear industry. Together, they took Gucci from
bankruptcy to a brand able to acquire many promising brands under the larger Gucci Group umbrella. Tom
Ford’s impact on Gucci will never be forgotten. Having the strong support of Dominico De Sole, he was the

9
https://paperap.com/paper-on-gucci-case-study-4093/
10
Renamed as Kering in 2013.
5
designer who turned things around for the struggling Gucci. He was responsible for maintaining a sense of
the company's legacy, history and heritage while updating Gucci's trademarks.

From Sustainability to CSR

If Tom Ford and Domenico De Sole have been responsible of taking back one the most important brand’s
sustainable values, quality, later, future CEOs and creative directors like the well-known duo Patrizio di
Marco and Frida Giannini, would have sustain the transaction of Gucci from sustainability to corporate social
responsibility and an ever-increasing external communication alongside its growth.

Gucci’s corporate identity initially showed an orientation towards sustainability related issues, but with no
formal mention in its corporate values or mission. Indeed, since its foundation in 1921, Gucci has been
known for products of outstanding craftsmanship and quality. Gucci has also been concerned with
environmental problems, so much that the group decided to produce differently using eco-friendly materials.
Since 2004, it has brought together high quality and Made-in-Italy craftsmanship in order to follow a path of
sustainability. As a consequence, Gucci was “the first luxury goods brand to receive the SA8000 certification
which aimed at safeguarding the wellbeing of all employees and workers.”11 Even before seeking SA8000
certification, Gucci promoted sustainable values across the company through the adoption of nine key
principles, namely business ethics, professional skills, environment, health and safety, cooperation,
stakeholders, human rights, diversity, and equal opportunities. While these principles formed the core of
corporate identity, SA8000 certification provided the initial framework to make Gucci’s standards around total
quality fully actionable.

In the second stage, the Sustainability identity became explicitly part of the corporate identity of Gucci’s
parent company PPR/Kering. In fact, the PPR/Kering group formalized the approach to CSR with seven key
priorities which acted as a common framework of reference for each brand. The group prioritized these
principles by distilling them into measurable objectives that suit their business. The definition of these
PPR/Kering principles has been the framework for the “Gucci CSR policies” approved in 201012.

A Voluntary act
In the past decade, human rights and environmental NGOs had targeted premium brand companies for
having infringed ethical or labour standards and for their high-profile visibility. This was not the case for
Gucci, whose decision to pursue a sustainable process was not spurred by a need to recover a damaged
corporate image because of a company scandal. It was more the sense of responsibility and sense of
purpose.

Gucci established its formal commitment to sustainability in June 2004, when the company signed an
agreement with the trade unions to adopt the SA8000 standard across the supply chain. This would have
helped the company to develop and manage social accountability systems, with the objective of improving
such sustainable-related issues as child labour, health and safety conditions, compensation, and working
hours13. Moreover, this involved also training initiatives through workshops, information kits, and explanatory
materials (approximately 400 contractors and sub-contractors were trained in sustainability and related
issues through 20 half day sessions14).

Gucci’s decision to pursue the SA8000 certification was prompted by its objective to develop a practical and
certifiable sustainable practice that could increase the monitoring activities of its supply chain. It would be
worthwhile to emphasize that Gucci chose to abide by SA8000 because the social accountability standard
was functional to Gucci’s specific sustainable strategy and not because of any other issues such as
company scandal.

11
https://tesi.luiss.it/16504/1/659241.pdf
12
http://www.ppr.com/en/commitments/7-csr-priorities#
13
http://www.sa-intl.org/
14
https://www.researchgate.net/publication/256022185_The_Evolution_of_Corporate_Social_R
esponsibility_in_Gucci_From_Risk_Management_to_Stakeholder_Engagement
6
The SA8000 certification process, formally obtained in August 2007 for the leather and jewellery sectors and
subsequently for other sectors, proved to be successful. It prompted a workable approach to realize
sustainable shared goals in consultation of employees, contractors and subcontractors.

Still in 2017, to support suppliers in meeting Gucci’s Sustainable Principles, each year the firm holds training
seminars for each category product in order to share best-practice information relating to its sustainability
strategy and key sustainability impacts in the supply chain. Training sessions focus on different parts of
production from ready-to-wear supply chain and leather goods supply chain, and with suppliers from the
Shoe Business Unit and metal components15.

Structure
Prior to 2007, the responsibility for handling sustainability and related activities, was delegated to the Human
Resources (HR) function, since this was traditionally the unit in charge of the contractual relationships with
the firm’s contractors. At that time, sustainability in Gucci was meant to ensure compliance with SA8000 at
every point on the leather goods and jewellery supply chain. To help employees and contractors understand
and adopt SA8000, the HR function developed a series of training seminars to instruct about regulation,
occupational health and safety, maintenance procedures, and so on.

In 2007, the responsibility of the sustainable implementation shifted from the HR function to an officially
appointed Corporate Social and Environmental Responsibility Manager. At the beginning, the CSR manager
was a single person reporting to the HR function, but later, when Sustainable activities became more holistic
than managing the implementation of SA8000, the CSR manager needed a major managerial role in the
organization. Such a change was instrumental to improving communication across hierarchical levels with all
other functions and processes of the organization, as well as to the creation of networks within the company.

To reach this goal, a proper organizational function in staff to the CEO was created. Since the appointment
of the CSR manager, sustainable activities was perceived as strategic drivers able to differentiate Gucci from
its competitors. An internal CSR training program was specifically designed for Gucci’s middle management,
with the objective of supporting them in making such a transition. A significant effort thus took place to
change the attitude of the internal managers, employees, and the external suppliers toward sustainability
(see Exhibit 9).

Gucci approach toward Sustainability

Gucci showed a low-profile approach when communicating its sustainable commitment to the press and
local communities. As late as 2012, there was almost no voluntary disclosure required about sustainable
activities. The disclosure was fully voluntary and incremental, without being pushed by any stakeholder.
Gucci being a global brand needed to have a measured approach about its disclosures, since a little
imprudence in the external communication could transform the firm as the target of environmental NGOs and
the media. Progressively, both the external as well the internal communication on these topics significantly
increased.

Deborah Lucchetti of the Clean Clothes Campaign and Rossella Ravagli, Head of Corporate Sustainability &
Responsibility, confirm the disclosure attitude of Gucci as follows:

“I personally understand the communication strategy adopted by Gucci to focus mainly on brand
value (Gucci’s primary value as quality product and not as ‘green’ product). However, a firm’s
communication with more emphasis on sustainability-related aspects (for instance focusing on
transparency and accountability along the whole supply chain) would allow in my opinion a further
appreciation of Gucci’s brand as a whole16.”

- Deborah Lucchetti

“Our communication until now was a very low-profile communication. To be honest, now it is
absolutely necessary to do it, not just to increase our reputation, but because people really need to
know. I think that at the beginning the company really wanted to be working on the substance of the

15
http://equilibrium.gucci.com/sustainability-guidelines-and-principles/
16
https://www.researchgate.net/publication/256022185_The_Evolution_of_Corporate_Social_R
esponsibility_in_Gucci_From_Risk_Management_to_Stakeholder_Engagement
7
 topic, and not be perceived at green-washers. I started to work in CSR in 1998, so I know and
recognize when someone is green-washing and when a company is working in the roots of the
problem.”17

- Rossella Ravagli

Gucci’s Environmental Commitment

“The world's leading brands are rightly judged today not just on the quality of their products
and services, but also on the way they act in the community and towards the environment. In
2004, Gucci took a leadership position in the industry by voluntarily initiating the certification
process for Corporate Social Responsibility (SA 8000) across its supply chains. In the same
year Gucci established a partnership with UNICEF, which in the last six years has generated
more than US$ 8 million for its projects supporting disadvantaged children and women in
sub-Saharan Africa Now. These are initiatives which are part of our values system just as we
believe a concern for the environment needs to be.”18

- Patrizio di Marco

In 2010, Gucci’s environmental commitment materialized with the 14001 certification and the launch of
diverse sustainable initiatives. The brand started its worldwide eco-friendly program which aimed to reduce
the firm’s impact on the environment. At the center of the program were the new eco-friendly and connected
packaging which was designed to reduce materials, used only FSC Certified paper and was 100%
recyclable.

Its eco-friendly shopping bags are a great example of Gucci’s environmental commitment. The bags,
conceived by Gucci Creative Director Frida Giannini, brought together Gucci’s Made-in-Italy luxury tradition -
with the brown pantone complemented by the golden GUCCI logo and the “Firenze 1921” text - and its
environmental responsibility - with a sentence “This shopping bag is FSC certified and made of 100%
recyclable material” inside of the shopping bag. All plastic surfaces were also removed because they were
not recyclable. (see Exhibit 10).

“This project proves that you sacrifice nothing creatively when working with environmentally
friendly materials. The new packaging is very beautiful and evokes perfectly the
combination of Gucci's values and the traditions for which it has become renowned
since Guccio Gucci founded the company in Florence nearly 90 years ago. I believe
we have a collective responsibility towards future generations to minimise our impact
on the environment.”19

- Frida Giannini

Other components of the program were the reduction of C02 emissions and the creation of sustainable
products: an innovative sunglasses model made from Liquid Wood and “Sustainable Soles”, sandals made
from biodegradable plastic (see Exhibit 11). These initiatives reinforced not only the environmental
responsibility of the brand but also its heritage as Gucci was soon to celebrate its 90th anniversary.

17
https://brage.bibsys.no/xmlui/bitstream/handle/11250/169441/Kathuria_2013.pdf?sequence
=1
18
https://www.kering.com/it/news/gucci-announces-launch-worldwide-eco-friendly-initiative-
aimed-at-reducing-paper-consumption-co2-emissions
19
https://www.kering.com/it/news/gucci-announces-launch-worldwide-eco-friendly-initiative-
aimed-at-reducing-paper-consumption-co2-emissions
8
The Powerful Couple
The Gucci duo, who are also a couple in real life, both left Gucci in 2014. Both Frida Giannini and Patrizio di
Marco made a lot for what concerns Gucci’s Sustainable and CSR initiatives (see Exhibit 12).

Unfortunately for the brand, for the second time in a decade, both its CEO and its creative director
simultaneously left. Tom Ford and Domenico De Sole were the first duo in 2004 to left the company after
bringing the business back on track and transforming it into one of the most appealing worldwide fashion
brand. Under the reign of Frida Giannini, Gucci became known for its strong product focus.“However, despite
di Marco’s efforts, quarterly sales growth began to slow in the second half of 2013 and, by December 2014,
after years of profitable growth, Gucci had experienced three consecutive quarters of declining sales.”20

Kering chose a rising star among the ranks of its executives, the 53-year-old Marco Bizzarri, to become CEO
and President of Gucci on the 12th December 2014. He had already proved that he knew how to drive
business growth not only at Bottega Veneta - annual revenues grew from €400 million to more than €1 billion
- but also with Stella McCartney in the past. “His new role was seen as recognition of these successes, and
an opportunity to guide the development of several of Kering’s brands, as opposed to operating one
business directly.”21. In order to appoint a great creative director, he asked the HR director to give him a list
of potential candidates among important people inside the firm. Marco Bizzarri did not know Alessandro
Michele so he asked him to come to Rome in order to meet.

“He struck me immediately because he welcomed me with the fur loafers and I immediately
thought <<this must be crazy>>22" (see Exhibit 13)

- Marco Bizzarri

They took coffee in his apartment. It was supposed to be a half an hour discussion, but they talked for four
hours. After that first meeting in December and at least two weeks of e-mails, in January, Bizzarri called
François Pinault and said: “I’ve made up my mind. This is the man and the person I pick to work with23.”

The reactions of some long-time fans of the brand were not good at the beginning. The showed their
discontent on social media. But it did not stop the reinvention of Gucci. Bizzari and Michele formed a duo
who step by step rethought completely the identity of the brand. Not only the company’s collections were
changed but also its branding, advertising and store concept.

“Marco and Alessandro have already demonstrated their deep understanding of the brand’s
identity and I am convinced that they have the skills needed to intensify its aura and restart
its growth engine. Gucci has a history of reinvention and the new direction pointed out by its
leadership team is very promising24.”

- Francois Pinault

Bizzarri made another important decision: he decided to anticipate the exit of Frida, expected after the Men's
Autumn/Winter 2015-16 collection presented on 19 January, in Milan, in order to accelerate the change.

“If we waited until the women’s fashion show at the end of February, I would have lost six
months. Six months for Gucci today is too long. I wanted to create a kind of disruption. The
world today is going so fast. We are in the digital age and six months today are not six
months before. Gucci was in a moment where it needed to make a big, big statement (…) It
missed a week at the show and Alessandro accepted. We threw away all the collection we
had prepared and told Frida that we had to interrupt the relationship in advance. We knew
that the structure of Gucci was able to create a collection in five days. I could not have done

20
https://www.businessoffashion.com/articles/ceo-talk/reinventing-gucci
21
https://www.businessoffashion.com/articles/ceo-talk/reinventing-gucci
22
https://fashionunited.it/news/business/gucci-il-ceo-bizzarri-spiega-come-ha-rivoluzionato-il-
marchio/2016111415396
23
https://www.businessoffashion.com/articles/ceo-talk/reinventing-gucci
24
https://www.businessoffashion.com/articles/ceo-talk/reinventing-gucci
9
 that in other companies, but at Gucci it was feasible because the structure below is so
powerful25.”

- Marco Bizzarri

The results were surprising and spoke for themself. When Bizzarri and Michele arrived in 2014, the house
had closed with 3.5 billion euros in turnover. In 2017, revenues were 6.2 billion euros26. An exponential
growth, which seemed not to stop. Gucci has once again become the best-selling and trend-setting brand.

Culture of Purpose Sustainability Plan

During the Kering Talk at the London College of Fashion in 2017, Gucci’s CEO announced that its haute
couture house will stop producing fur and join the Fur Free Alliance as of the spring 2018 collection.
Simultaneously, Gucci had received the Green Carpet Fashion award for sustainable innovation.

Marco Bizzarri also stressed that Gucci’s sustainable approach had social connotations and was not only
linked to environmental issues. The brand’s fur-free decision could be read through the company’s 10-year
“Culture of Purpose” sustainability plan. Another social commitment was to donate 1 million euros to
UNICEF’s Girls’ Empowerment Initiative.

“Our new 10-year 'Culture of Purpose' sustainability plan has three principal focuses. It is about Environment,
Humanity and New Models”, stated Bizzarri, who added that the plan demonstrated company's absolute
commitment to making sustainability an intrinsic part of their business.

Bizzarri also noted that the plan was a vision he shared with creative director, stating,

“In selecting a new creative director I wanted to find someone who shared a belief in the importance of the
same values. I sensed that immediately on meeting Alessandro for the first time. Together, by committing to
a culture of purpose, taking responsibility and encouraging respect, inclusivity and empowerment, we want to
create the necessary conditions for a progressive approach to sustainability27."

The duo had several social goals : reduce Gucci’s environmental impact, enhance the lives of the workers,
support communities and use technical innovation to improve efficiency in the productions and logistics
processes. The CEO, for instance, chose to invest in startups, that innovate in their textile production
processes. Thus, its newly opened Gucci ArtLab offered a start-up environment for innovation, craftsmanship
and experimentation.

“New technology presents unlimited possibilities in terms of textiles and it would be a

mistake for us not to be at the forefront of this. We need to invest in these start-ups because
they can disrupt the sector in terms of sustainability, achieving the same quality of leather
production for instance, without any water or chemical waste28.”

- Marco Bizzarri

Gucci’s decision reflected a generational shift in the fashion industry and the need to attract younger
shoppers, who are increasingly concerned about sustainability and animal welfare. In 2017, millennials aged
18-34, accounted for more than half of Gucci’s consumers, according to the company.29

25
https://www.businessoffashion.com/articles/ceo-talk/reinventing-gucci
26
https://www.mffashion.com/news/the-next-100/the-next-100-italy-marco-bizzarri-e-
alessandro-michele-201806111834044724
27
https://www.hollywoodreporter.com/news/gucci-going-fur-free-starting-spring-2018-season-
1047808
28
https://wwd.com/fashion-news/fashion-scoops/gucci-goes-fur-free-outlines-sustainability-
approach-11025927/
29
https://www.ft.com/content/9b36505c-af1b-11e7-aab9-abaa44b1e130
10
Gucci Equilibrium
“We have been working on sustainability for so long and we realized at one point that our
actions needed to be better understood within and outside the company30.”

- Marco Bizzarri

After one year from the launch of the “Culture of Purpose” Sustainability Plan, Gucci decided to impress the
fashion world with a new venture on World Environment Day of 2018. The Italian fashion house launched
Equilibrium.gucci.com, an online platform designed to connect “people, planet and purpose” and to bring
positive change. (see Exhibit 14). The name of the platform “GUCCI EQUILIBRIUM” came from the need of
a balance between aestheticism and ethics forthe brand.

It was an intelligent way for the brand to remind not only its customers, but also its employees and suppliers
that sustainability, transparency and integrity were core values now. The platform allowed its visitors to
understand each initiative from Gucci linked to the 2017 sustainability plan. The brand ensured that it was
held accountable for its actions in-keeping with its newly announced purpose. Readers were for example
able to read the traceability of 100 percent of the raw materials used by the brand.

The second goal of the platform was to get the firm’s consumers to get involved in fighting for the
environment and in doing so Gucci gave easy access to its “Corporate Sustainability and Responsibility
policy.”

“These are critical times when we can all play our part in helping to deliver on the UN Global Goals
and the Paris Climate Agreement... The only way to do that is by bringing people together, sharing
ideas, innovation and experiences. This is the objective we have set for Gucci Equilibrium.”31

-- Marco Bizzarri

Gucci also encouraged its staff to dedicate one percent of their working time in volunteering to help local
communities.

In addition to those initiatives for the environment, Gucci did campaigns with female celebrities such as Frida
Giannini, Salma Hayek and Beyoncé in order to support women’s empowerment and inclusion. Chime for
Change is a publicly recognized initiative for instance. Finally, the platform expressed clearly the brand’s will
to focus on people and social enterprises. For example, “I was a Sari” allows viewers to watch Gucci
craftsmen teach women from marginalized communities in Mumbai the skills to upcycle saris.

"Thanks to the shifting values of millennials, luxury brands like Gucci are realizing that CSR is no
longer merely a box-ticking exercise," said Diana Verde Nieto, co-founder and CEO of Positive
Luxury, London…Gucci recognizes the importance of communicating what it is actively doing for
people and the planet, no matter how small those actions32.”

The Future
Coming up to Alessadro Michele’s house in Rome, had now become a sort of Christmas tradition for the
Marco Bizzarri. Each year in December he would have walked the same streets of the city to come to visit
his colleague and friend and took that time to reflect.

When looking at the past, Marco Bizzarri’s hardest benchmark was the duo Giannini/di Marco, as he and
Alessandro took over them in 2015. For many years Gucci’s approach to sustainability was to keep a low
profile, keeping its sustainable activities within company’s core values. Frida Giannini and Patrizio di Marco
launch of Sustainable and CSR initiatives represented the first sign of a new approach.

However, Bizzarri had a radical change in mind. Not only he wanted to create a platform to promote the
label’s commitment to sustainability, but he also wanted to educate customers and readers about what
sustainability really looks like. “If we want to make people shift toward a more sustainable behaviour, this is
the road we have to take”.

30
https://www.vogue.co.uk/article/gucci-equilibrium
31
https://thecurrentdaily.com/2018/06/06/gucci-equilibrium-platform-sustainable-purpose/
32
https://www.luxurydaily.com/gucci-details-culture-of-purpose-in-sustainability-site/
11
So he thought, when arriving in front of Alessandro’s house. It was year 2018, but it seemed nothing
changed from their first meeting since 2014. Marco still thought that Michele was pretty crazy. He saw the
door opening and Alessandro wearing the same fur loafer he had saw four years before. However, this time
those shoes were made of faux fur.

12
Exhibit 1: Gucci's first store in Florence on Via Vigna Nuova, 7

13
Exhibit 2: Gucci's Horsebit

14
Exhibit 3: Bamboo bag

Exhibit 4: Gucci Green & Red Stripe

15
Exhibit 5: G
Gucci double
e G logo

Exhibit 6: F
Flora Scarf

16
6
Exhibit 7: Jackie O Shoulder Bag

Exhibit 8: Gucci Fall 1995 Ready-to-Wear Collection by Tom Ford

17
Exhibit 9: CSR organizational chart (source:
https://www.researchgate.net/publication/256022185_The_Evolution_of_Corporate_Social_Responsibility_in
_Gucci_From_Risk_Management_to_Stakeholder_Engagement)

Exhibit 10: Gucci eco-friendly shopping bag

18
Exhibit 11: Gucci eco-friendly sandals and sunglasses

19
Exhibit 12: Gucci Tatoo
o Heart Colle
ection for UN a33; Gucci 20007 holiday campaign to
NICEF featuring Rihanna o
34 35
benefit UNIICEF ; Guccci CHIME FOR
F CHANG GE ; Gucci UNICEF Sn nowman in A Africa book and Coatedd
Canvas Joyy Boston Bagg36

33
Over the
e first five yea
ars of the ca
ampaign Guccci intensified d the commitment to UN
NICEF each year
y throughh
creative maarketing and d communica ations activitties designed to create awareness and greaterr fundraising g
potential fo
or the partn nership. Fo or the 2008 8 initiative, Gucci preseented the wwhite TATTO OO HEART T
COLLECTIO ON together with a landm mark global advertising campaign fe eaturing awarrd-winning musical
m artistt
Rihanna.
34
In 2005 they began a partnersh hip with UNIICEF that le ed to Gucci creating a sspecial collec ction for the
e
United Child
dren's Fund with a perceentage of its sales going directly to th
he Fund. Froom 2005 and d 2009, Fridaa
Giannini designed an annnual holiday
y collection o
of exclusive accessories,
a dedicated too the Gucci Campaign
C to
o
Benefit UNICEF. Guccii stores world dwide donate ed a percenttage of saless during the holiday seas son from thiss
special grou
up of produccts to supporrt UNICEF. TThe first exc
clusive "Gucc ci for UNICE EF" bag was launched in n
November 2 2007 and waas dedicated to UNICEF ffor one full year to increa ase its fundraaising potential.

20
0
Exhibit 13: Gucci Leather Princetown Slippers

35
Perhaps the most visible initiative has been Chime for Change, a campaign launched in February 2013 to
support female education, health services and justice. Founded by Gucci, Beyoncé and Salma Hayek Pinault
in 2012, CHIME FOR CHANGE is a global campaign focused on girls’ and women’s empowerment. It serves
to convene, unite and strengthen voices speaking out for girls and women around the world, and to raise
funds, through crowd-funding, for non-profit organizations pursuing change in the areas of education, health
and justice.
36
In 2009, to honour the 5th anniversary of the campaign, Giannini commissioned acclaimed author and
illustrator Michael Roberts to create a magical new children’s book, “Snowman in Africa”, to benefit UNICEF.
Taking inspiration from Roberts’ whimsical illustrations, Giannini also designed exclusive Gucci accessories
as well as a Gucci Gift Card for UNICEF featuring Roberts’ distinctive designs.

21
Exhibit 14: Gucci Equiliibrium

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 REFERENCES

● Press release for the signature of the “Agreement on the Sustainability of our Supply Chain”, 16
September 2009.
https://www.researchgate.net/publication/256022185_The_Evolution_of_Corporate_Social_Respons
ibility_in_Gucci_From_Risk_Management_to_Stakeholder_Engagement
● http://equilibrium.gucci.com/
● http://equilibrium.gucci.com/sustainability-guidelines-and-principles/
● http://ualresearchonline.arts.ac.uk/970/1/Guccigroup.pdf
● http://www.caftours.com/magazine/great-guccio-gucci/
● http://www.florencewebguide.com/gucci-museum.html
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friendly_initiative_aimed_at_reducing
● http://www.loveagoodstripe.com/glorious-gucci-the-story-behind-the-name/
● http://www.ppr.com/en/commitments/7-csr-priorities#
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forgotten-aldo-gucci/
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marchio/2016111415396
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● https://wwd.com/fashion-news/fashion-scoops/gucci-goes-fur-free-outlines-sustainability-approach-
11025927/
● https://www.businessoffashion.com/articles/ceo-talk/reinventing-gucci
● https://www.cameramoda.it/en/associazione/news/915/
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● https://www.fastcompany.com/3039931/everything-you-need-to-know-about-the-shakeup-at-gucci
● https://www.ft.com/content/9b36505c-af1b-11e7-aab9-abaa44b1e130
● https://www.hollywoodreporter.com/news/gucci-going-fur-free-starting-spring-2018-season-1047808
● https://www.independent.co.uk/news/business/luxury-time-for-guccis-survivor-1319842.html
● https://www.independent.co.uk/news/business/news/gucci-fur-free-2018-commitment-social-
responsibility-italian-fashion-brand-marco-bizzarri-a7996061.html
● https://www.ivyandfig.com/blogs/blog/happy-birth day-guccio-gucci-1
● https://www.luxurydaily.com/gucci-details-culture-of-purpose-in-sustainability-site/
● https://www.mffashion.com/news/the-next-100/the-next-100-italy-marco-bizzarri-e-alessandro-
michele-201806111834044724
● https://www.researchgate.net/publication/256022185_The_Evolution_of_Corporate_Social_Respons
ibility_in_Gucci_From_Risk_Management_to_Stakeholder_Engagement
● https://www.thefamouspeople.com/profiles/guccio-gucci-18526.php
● https://www.theguardian.com/sustainable-business/letters-to-leaders-gucci-green-lifestyle
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● https://www.wsj.com/articles/guccis-luster-fades-in-tough-luxury-climate-1415919209

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